Shares of low-cost airline surged as much as 20% to hit a 52-week high of ₹52.29 apiece on the BSE, a day after T This was in contrast to the broader BSE Sensex which was trading 98.18 points or 0.14% lower at 69,545.24.
The scrip opened higher at ₹45, up 3.2%, as against the previous closing price of ₹45. The market capitalisation of the low-cost airline was trading ₹3,577.37 crore with more than 3 crore shares exchanging hands as against the two-week average of 96.70 lakh shares. The company’s shares hit a 52-week low of ₹22.65 on May 23 this year.
In the past one month, three months and one year, the counter has given 38.26%, 28.45% and 26.76% in returns, respectively. In the year-to-date period, the counter has given 34.25% in returns.
"This is to inform you that the Board of Directors of the Company in its meeting scheduled on December 11, 2023 (Monday) will discuss and consider, inter-alia, options for raising fresh capital through the issue of equity shares and/or convertible securities on the preferential basis, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the Company and receipt of applicable regulatory approvals, as may be required," the airline says in a regulatory filing.
The development comes months after the cash-strapped airline announced its plans to infuse ₹500 crore by way of subscription to equity shares and/or convertible securities/equity share warrants on a preferential basis, to strengthen the financial position of the company in July this year.
In September this year, the low-cost airline, which is facing the double whammy of financial distress and legal struggle, completed its payment of $1.5 million to the global investment bank and financial services firm Credit Suisse as per the directive issued by the Supreme Court of India. The company also made a payment worth ₹77.5 crore and ₹100 crore, respectively, to its former promoter Kalanithi Maran's Kal Airways Private Ltd in September this year.
Meanwhile, the low-cost carrier has already paid a total of $8 million to the Swiss Bank.
The company is yet to disclose its September quarter results. In the April to June quarter this year, the company reported a standalone net profit of ₹205 crore, as against the loss of ₹789 crore in the same period last year. In October this year, the company's domestic market share stood at 4.2%.